REO # 216298
Countrywide Home Loans, Inc.
REAL ESTATE PURCHASE ADDENDUM
This Real Estate Purchase Addendum (“Addendum”) is to be made part of, and incorporated into, the Real Estate Purchase Contract dated ______, 20___ ("Contract”) between ("Seller" and the term “Seller” shall also include Countrywide Home Loans, Inc.) and ("Buyer") for the property and improvements located at the following address: 716 Cornelia Street, North Mankato, MN ("Property"). Buyer and Seller may each be referred to herein as a “Party” and collectively as the “Parties.” The Contract and this Addendum together constitute the “Agreement”.
The Seller and the Buyer agree as follows:
1. LIMITATION OF SELLER’S LIABILITY AND BUYER’S Waiver of important rights:
Buyer understands and acknowledges that seller has acquired the property through foreclosure, deed-in-lieu of foreclosure, or similar process, Seller has never occupied the property, and seller has little or no direct knowledge about the condition of the property. buyer agrees that buyer is buying the property “as is” (as more fully set forth in section 13 of this addendum).
notwithstanding any provision to the contrary in THE AGREEMENT, SELLER’S LIABILITY AND BUYER’S SOLE AND EXCLUSIVE REMEDY iN ALL CIRCUMSTANCES AND FOR ALL CLAIMS (as the term is defined in Section 26 of this Addendum, and all references in this addendum to “claims,” “Claim,” “Claims,” or “Claim” shall have such meaning) arising out of or relating in aNY WAY TO THE AGREEMENT OR THE SALE OF THE PROPERTY TO BUYER INCLUDING, BUT NOT LIMITED TO, SELLER’S BREACH OR TERMINATION OF THE AGREEMENT, THE CONDITION OF THE PROPERTY, SELLER’S TITLE TO THE PROPERTY, THE OCCUPANCY STATUS OF THE PROPERTY, the size, square footage, boundaries, or location of the property, any cost or expense incurred by Buyer in selling a current or prior residence or terminating a lease on a current or prior residence, obtaining other living accommodations, moving, storage or relocation expenses, or any other costs or expenses incurred by buyer IN CONNECTION WITH THE AGREEMENT SHALL BE LIMITED TO no more than:
(A) A RETURN OF BUYER’S EARNEST MONEY DEPOSIT IF THE SALE TO BUYER DOES NOT CLOSE; and
(B) tHE LESSER OF BUYER’S ACTUAL DAMAGES OR $5,000.00 IF THE SALE TO BUYER CLOSEs.
BUYER SHALL NOT BE ENTITLED TO a return of buyer’s earnest money deposit IF BUYER materially BREACHES THE AGREEMENT.
Buyer agrees that Seller shall not be liable to Buyer under any circumstances for any special, consequential, or punitive damages whatsoever, whether in contract, tort (including negligence and strict liability), or any other legal or equitable principle, theory, or cause of action arising out of or related in any way to any claim, including, but not limited to, the aforementioned claims.
Any reference to a return of the Buyer’s earnest money deposit contained in the Agreement shall mean a return of the earnest money deposit, less any escrow cancellation fees applicable to the Buyer under the Agreement and less fees and costs payable for services and products provided during escrow at the Buyer’s request. to the fullest extent permitted by law The Buyer waives any claims that the Property is unique and the Buyer acknowledges that a return of its earnest money deposit can adequately and fairly compensate the Buyer for all claims. Upon return of the earnest money deposit to the Buyer, the Agreement shall be terminated, and the Buyer and the Seller shall have no further liability, obligation, or responsibility to each other IN CONNECTION WITH THE AGREEMENT. IF THE SALE TO BUYER CLOSES AND SELLER COMPENSATES BUYER AS PROVIDED ABOVE FOR BUYER’S ACTUAL DAMAGES, IF ANY, THEN the Buyer and the Seller shall have no further liability, obligation, or responsibility to each other IN CONNECTION WITH THE AGREEMENT.
sELLER’S LIMITATION OF LIABILITY AND BUYER’S WAIVERS PROVIDED IN THE AGREEMENT ARE a material part of the consideration to be received by The Seller under thE Agreement as negotiated and agreed to by The Buyer and The Seller.
The Buyer further waives the following, TO THE FULLEST EXTENT PERMITTED BY LAW:
(a) all rights to file and maintain an action against The Seller for specific performance;
(b) right to record a lis pendens against the Property or to record thE Agreement or a memorandum thereof in the real property RECORDS;
(c) right to invoke any equitable remedy that would prevent The Seller from conveying the property to a third party Buyer;
(d) any claims arising from the adjustments or prorations or errors in calculating the adjustments or prorations that are or may be discovered after closing unless such claims are material and buyer notifies seller in writing of such claims within thirty (30) days of the closing date;
(e) any remedy of any kind that The Buyer might otherwise be entitled to at law or equity (including, but not limited to, rescission of thE Agreement), except as expressly provided in this Addendum;
(f) any right to a trial by jury in any litigation arising from or related in any way to thE Agreement;
(H) any right to avoid the sale of the property or reduce the price or hold The Seller liable for Any claims arising out of or related in any way to The condition, construction. repair, or treatment of the property, or any defects, apparent or latent, that may now or hereafter exist with respect to the Property;
(J) Any claims arising out of or relating in any way to encroachments, easements, boundaries, shortages in area or any other matter that would be disclosed or revealed by a survey or inspection of the property or search of public records; and
(K) Any claims arising out of or relating in any way to the Square footage, size, or location of the property, or any information provided on the multiple listing service, or brochures or web sites of seller or seller’s agent or broker.
References to the “Seller” in this Section 1 of this Addendum shall include the Seller and the Indemnified Parties (as defined in Section 26 of this Addendum, and all references in this Addendum to “Indemnified Parties” or “INDEMNIFIED PARTIES” shall have the meaning set forth in Section 26).
Buyer initials______
2. Effective Date: The date of Seller’s execution of this Addendum shall be the “Effective Date” of the Agreement, notwithstanding any prior understanding or agreement with respect to the financial terms set forth herein. The Agreement shall be null and void if the Agreement signed by the Buyer is not actually received by the Seller before the Seller accepts a competing offer, or gives verbal or written notice of revocation to the Buyer, the Buyer's agent or attorney, or the listing agent. The Agreement must be approved by the Seller's management, and it must be signed by all parties in order to be binding.
3. Purchase Price:
Purchase Price: $
Down Payment: $
Loan Amount (nte) : $
4. Earnest Money Deposit:
If applicable, escrow will be opened by both parties immediately following the Effective Date with an escrow/closing agent acceptable to the Seller. The Buyer's earnest money deposit of $______is to be delivered to Seller’s listing agent to be held pursuant to local law and custom, within 24 hours of the Effective Date.
5. Financing: The Agreement (check one): ( ) is ( ) is not contingent on the Buyer obtaining financing for the purchase of the Property. If the Agreement is contingent on financing, the type of financing shall be the following (check one):
___ Conventional
___ FHA
___ VA
___ Other (specify: ______)
(a) If the Agreement is contingent on financing, the Buyer shall apply for a loan in the amount of $______with a term of ______years, at prevailing rates, terms and conditions. The Buyer shall complete and submit to a mortgage lender an application for a mortgage loan containing the terms set forth in this paragraph within three (3) business days of the Effective Date, and shall use diligent efforts to obtain a mortgage loan commitment within fifteen (15) calendar days from the said date. If, despite the Buyer’s diligent efforts, the Buyer cannot obtain a mortgage loan commitment by the specified date, then either the Buyer or the Seller may terminate the Agreement by giving written notice to the other Party. The Buyer’s notice must include a copy of the loan application, proof of the application date, and a copy of the denial letter from the prospective lender. In the event of a proper termination of the Agreement under this paragraph, the earnest money deposit shall be returned to the Buyer and the parties shall have no further obligation to each other under the Agreement. The Buyer agrees to cooperate and comply with all requests for documents and information from the Buyer’s chosen lender during the loan application process. Failure of the Buyer to comply with such requests from the lender that results in the denial of the mortgage loan shall be considered a material breach of the Agreement and the Seller shall be entitled to retain any earnest money deposited by Buyer.
If the Agreement is contingent on financing, as a sales condition, Buyer must obtain a pre-approval letter from a branch office of Countrywide Home Loans, Inc. (“CHL”) for a mortgage loan in an amount and under terms sufficient for Buyer to perform its obligations under the Agreement, and such letter must accompany the Agreement. The pre-approval shall include, but is not limited to, the pre-approval letter, a satisfactory credit report, and proof of funds sufficient to meet Buyer’s obligations under the Agreement. Buyer’s submission of proof of pre-approval is a condition precedent to Seller’s acceptance of Buyer’s offer. Seller may require Buyer to obtain, at no cost to Buyer, loan pre-approval as Seller may direct. Notwithstanding any Seller required pre-approval, Buyer is not required to obtain financing from CHL or Seller- Buyer may obtain financing from any source. As an incentive for the Buyer to obtain financing from CHL, CHL will offer a free appraisal and a free credit report if the Buyer finances and closes the purchase of the Property through financing from CHL.
(b) Cash Offer: Buyer shall provide Seller proof of liquid funds on deposit in the United States sufficient to close this transaction. Such proof shall be provided within three (3) business days of the Effective Date and shall be subject to Seller’s approval. The Property shall remain on the market until such proof of funds is accepted by Seller. Notwithstanding the terms provided in Section 12 for inspection of the Property, in the event of a noncontingent cash offer all inspections shall be completed and any notice of disapproval shall be given to Seller within seven (7) calendar days of the Effective Date. Failure to timely notify Seller of any disapproval shall be deemed acceptance by Buyer of the inspection results and the condition of the Property. Cash offers shall not be subject to any contingency, unless specifically described in Section 10 of this Addendum.
(c) The Buyer is aware that the price and terms of this transaction were negotiated on the basis of the type of financing selected by the Buyer. Any change of the loan type, loan terms, financing, or Buyer’s lender after the Agreement has been entered into shall be subject to Seller’s approval and may require, at Seller’s sole discretion, renegotiation of all or some of the terms of the Agreement.
6. Other Financial Terms:
Requested Closing Costs to Be Paid by Seller on Behalf of Buyer:
(limited to loan guidelines)
FHA/VA Allowable Costs: $
Other Loan Types Non Allowable: $
Property Transfer Taxes: $
Home Protection Policy: $
Other: $
Other: $
TOTAL: $
Requested Repairs:
By Buyer/Lender (nte): $
Fumigation/Chemical only: $
Termite Repairs (nte): $
Pest Report Fee (nte): $
Other: $
TOTAL: $
Notwithstanding any provision in the Agreement to the contrary, if Seller agrees in the Agreement to pay any of Buyer’s closing costs, then Seller shall only pay the lesser of Buyer’s actual closing costs and the closing costs that Seller has agreed to pay in the Agreement. Section 17 has additional provisions pertaining to closing costs.
7. Time of the Essence; Closing Date:
(a) It is agreed that time is of the essence with respect to all dates specified in the Agreement and any addenda, riders, or amendments thereto, meaning that all deadlines are intended to be strict and absolute. The Agreement shall terminate automatically, and without notice, if it is not concluded by the Closing Date, or any extension thereof.
(b) The closing shall take place on or before ______, 20____, or within five (5) calendar days of final loan approval by the lender, whichever is earlier (“Closing Date”), unless the Closing Date is extended in writing signed by the Seller and the Buyer, or extended by the Seller under the terms of the Agreement. The closing shall be held in the offices of the Seller's attorney or agent, or at a place so designated and approved by the Seller, unless otherwise required by applicable law. If the closing does not occur (through no fault of Seller) by the date specified in this Section 7 of this Addendum or in any extension, the Agreement is automatically terminated and the Seller shall retain any earnest money deposit as liquidated damages.
8. Extension of Closing Date; Per Diem Interest: Any request for extension of the Closing Date by Buyer must be in writing and approved by the Seller, and the Buyer agrees to pay to the Seller a per diem of one-tenth (1/10th) of one percent (1%) of the purchase price, but not less than $50.00 per day, towards Seller’s carrying costs, through and including the Closing Date specified in the written extension. If the sale does not close by the date specified in the written extension agreement, the Seller may retain the earnest money deposit and the accrued per diem payment as liquidated damages. This provision is not applicable if Buyer obtains FHA/VA financing for the purchase, or for delays caused by Seller.